The petroleum sector is characterized by substantial rents when discovered and developed. However, such rents are inherently volatile and finite. The effects of these returns to the economy especially for the emerging markets depend on how well such revenues are collected and managed. The purpose of this brief is to examine the effectiveness of the current fiscal regime and its contractual implications. The investor and the government may have different objectives in the development of gas fields. With the current fiscal regime, a prospective investor can satisfy the objective of obtaining substantial profits from gas exploitation with an internal rate of return above the market discount rate of 10%. With proper tax administration, the government is able to maintain the current tax rates at the same time encourage exploration and development of fields which are commercially viable before and after tax. By analysing the 2013 Model Production Sharing Agreement the author shows that with varying gas prices and costs of investments the current rent collecting system is progressive. Amidst the declining oil prices in the world market, a debate has emerged whether the Tanzanian fiscal regime is too tight or not and how it may affect Investments in the sector.
The Impact of Cultural, Religious and Legal Factors on Women’s Empowerment through Conditional Cash Transfers
This brief draws from a research report titled “Assessing women empowerment in Tanzania: the case of the Productive Social Safety Net Programme”. The research was funded by the International Development Centre (IDRC) as part of a research programme on “Growth and Opportunities for Women” and supported by the Tanzania Social Action Fund (TASAF). It is […]
Measuring user’s satisfaction with the public goods and services are an important component of organizational performance strategies for continual improvement (OECD, 2013). It is also a means of allowing policymakers to understand their customer base, helping to identify needs or gaps in accessibility (OECD, 2013). Public services are key determinant of quality of life and […]
Targeted Not Blanket Allocation, is key to improving effectiveness of input use through voucher schemes
Agriculture development strategies continue to play an integral role in the economies and livelihoods of the poor in Sub-Saharan Africa (SSA) because of their predominantly agrarian economies and agriculture provides employment to large proportions of the population. Despite their importance to local economies, these strategies have historically been driven by funding from international development agencies. […]
The literature on political economy of decentralization underscores the importance of intergovernmental transfers as a vehicle for achieving national social, economic and political policy goals when administrative and financial powers are devolved to lower levels of government. Decentralization left without considering the capacity of authorities to raise enough resources and address needs will enhance inequity […]